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TMI Blog2024 (7) TMI 1599X X X X Extracts X X X X X X X X Extracts X X X X ..... CENVAT Credit Rules, 2004 read with Section 11AA of the Central Excise Act, 1944. (iii) I impose Penalty of Rs. 3,83,22,537/- (Rupees Three Crores Eighty Three Lakhs Twenty Two Thousand Five Hundred Thirty Seven only) upon the party under Rule 15 of the CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. 2.1 The Appellant is registered for manufacture of Aerated Water and Packaged Mineral Water falling under Chapter Subheading No. 22021010 and 22011020 availing Cenvat credit on various inputs capital goods input services as provided under Cenvat Credit Rules, 2004. 2.2 During the course of audit it was observed that Appellant has availed credit on service tax paid on outward freight passed on to them by their Delhi unit by input service distributer invoices during the Financial Year 2008-09 and the credit of service tax outward is not classifiable definition of input services as per Rule 2(l)(ii) for Cenvat Credit Rules, 2004. A number of show cause notices have been issued to the Appellant on the basis audit objection raised detailed as below:- S. No. SCN No. And Date Period Involved Amount Involved Authority 1. V(30)ST/SCN/HCCV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing decisions:- a. Castrol India Ltd. [2013 (291) E.L.T. 469 (Tri.- Ahmd.)]. b. Godfrey Philips India Ltd. [2009 (239) E.L.T. 323 (Tri.-Ahmd.)]. c. Shriram Holographics [2016 (331) E.L.T. 0612 (Tri.- Del.)]. B. Appellant has taken only the distributed credit by the ISD C. in respect of earlier show cause notices issue has been finally determined in their favour in respect of 4 show cause notices. D. this being a statement of demand should have followed the said orders. No new ground has been taken while issuing this statement of demand. E. As no new case has been made out in the statement of demand, determination orders passed in the earlier show cause notices should have been followed. It is not even the case that these orders have been challenged in appeal before any Authority. F. Confirmation of demand contrary to earlier determination made in respect of the previous show cause notices is contrary to the scheme of issuance of statement of demand. 3.3 Learned Authorized Representative reiterates the findings recorded in the impugned order. 4.1 We have considered the impugned order along with submissions as made in appeal during the course of argument. 4.2 I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o whether the CENVAT Credit of Service tax paid on the Goods Transport Agency(GTA) Service of outward-freight is liable to be allowed to the party and whether the out-ward freight services are covered within the definition of "input-service" within the meaning of Rule 2(l)(ii) of the CENVAT Credit Rules, 2004. I find that for these purposes the Central Excise & Service Tax authorities having jurisdiction over such recipient of Services are the proper officer for issuance of Show Cause Notice and adjudication thereof. Accordingly, I hold that in the instant case the Show Cause Notice has been issued by the proper authority. The ratio of judgements cited by the party are not attracted in the instant case as the facts of the instant case are different and can easily be distinguished." 4.3 From the facts of the case we are very clear in our mind that the Appellant have availed Cenvat credit on the basis of the invoices distributed the credit by their ISD Registered unit. That being so the admissibility of credit could not have been questioned in respect of individual services which might be referred in any annexure as an end of recipient unit. If any investigation/enquiry was require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition shows that many of services could be performed in places other than where the manufacturer or receiver of the service might have been located and quite often a single manufacturer may be having several branches and services can be received in several places. 4.3 According to Rule 4A(2) of Service Tax Rules, 1994 every input services distributor distributing credit of taxable services is required to indicate the following details in the documents issued by him for distributing the credit viz. (i) the name, address and registration number of the person providing input services and the serial number and date of invoice, bill, or as the case may be, challan issued under sub-rule (1); (ii) the name and address of the said input services distributor; (iii) the name and address of the recipient of the credit distributed; (iv) the amount of the credit distributed. 5. When we look at the functions of the input service distributor and the documents to be issued by him for passing on the credit, it becomes quite clear that the document issued by him for passing on the credit does not contain the nature of service provided and the details of services. It contains t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exclusively engaged in the manufacture of exempted goods or providing of exempted services shall not be distributed. 5. Based on the definition given above and Rule 7 of the Cenvat Credit Rules, learned advocate submitted that the grounds taken in the show cause notice for denial of service tax are not at all valid since what was required to be seen by the Revenue in the unit which is receiving invoices from the ISD is whether, two conditions in the Rule 7 of Cenvat Credit Rules, 2004 have been fulfilled or not. In the absence of any allegation in the show cause notice indicating non-fulfilment of these conditions, no case can be said to have been made out. 6. We find considerable force in the arguments advanced by the learned counsel. It has not been alleged in the show cause notice nor there is finding that the credit distributed against the documents is more than the amount of service tax paid and in any case, this can be verified only at the end of ISD. It is also not the case of the department that credit has been received by the assessee in respect of services/goods which are totally exempted. ..." 4.4 We observe that the present proceedings have arisen out of a state ..... X X X X Extracts X X X X X X X X Extracts X X X X
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